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Chapter Three - The Sixth Damning Letter


A corporation shall not, in trade or commerce, engage in conduct that is misleading or deceptive. 

Learn about horrendous crimes and unscrupulous criminals, corrupt politicians and the lawyers who control the legal profession in Australia. Shameful, hideous, and treacherous are just a few words that describe these lawbreakers.

Corruption in Arbitration 

Corruption misleading and deceptive conduct in government, including non-government self regulators undermines the credibility of that government. It erodes trust by its citizens who are left without guidance. Corruption is the cancer that destroys economic growth.<

Absent Justice - Austel+39s Adverse Findings

On 17 February 1996 Dr Hughes wrote to Laurie James, President of the Institute of Arbitrators (see point 3 above) attaching a copy of John Rundell’s letter of 13 February 1996 to the TIO). In this letter, Dr Hughes advised Laurie James:

“I consent to you disclosing this letter to Mr Smith, save that I do not consent to the disclosure of the attached correspondence from third parties.” (See Prologue Evidence File No/8-E)

Long before Mr Rundell and Dr Hughes wrote their letters in February 1996, AUSTEL, the government communications regulator, officially advised Mr Pinnock (see Open letter File No/46-K, dated 3 October 1995) and Mr Rundell (see Open letter File No/45-A, dated 15 November 1995) my concerns were completely valid and that NONE of the billing claim documents I legitimately raised in my 1994/95 arbitration process was investigated (or even addressed) during my arbitration process. Still, however, Laurie James was deliberately misled and deceived, not just by the arbitrator but also by the official administrator of the same arbitration. Mr James was the very person who could have asked so many seriously disturbing questions about why my arbitration was not conducted according to the ambit of the arbitration procedures.=

Anyone reading my letter to Gareth Evans, dated 4 January 1996 (see Open Letter File No/49), will conclude I raised some very serious issues, which affected all the arbitrations still in progress.

Dr Hughes’ letter to Laurie James, under the heading “Letter to Senator Evans,” states:

“Mr Smith provided you a copy of a letter to Senator Gareth Evans dated 4 January 1996. I presume you require me to comment on those aspects of the letter which reflect upon my conduct as an arbitrator.

“The letter to Senator Evans is littered with inaccuracies. Some examples are:

contrary to Mr Smith’s assertion on page 3, his 24,000 (sic) documents were all viewed by me, Ferrier Hodgson Corporate Advisory, DMR Group Inc (Canada) and Lane Telecommunications Pty Ltd in accordance with the arbitration procedure.”

Mr Smith's assertions on page 4 that a technical expert, Mr Read refused to discuss technical information at his premises on 6 April 1995,  is correct - in this regard.Mr Read was acting in accordance with his interpretation of my direction which prohibited him from speaking to one part in the ansence of the other party at any site visit.  (See Open letter File No/45-G and Open Letter File No/49)

Why did Dr Hughes (the arbitrator) deceive Mr James (the President of the Institute of Arbitrators Australia) about these 24,000 documents which Telstra withheld from me because I assisted the AFP with their investigations into Telstra's interception of my telephone conversations and fax transmissions? Dr Hughes and his team could not have read and collated these late received documents because 70% of those 24,000 documents were re-couriered by Golden Messenger to Brisbane to COT Cases Ann Garms (see Chapter 3 - The Sixth Damning Letter). Why did the arbitrator tell Mr James that all those documents were assessed?

The 17,000 documents couriered to Brisbane were related to the Ericsson AXE telephone equipment used in the Fortitude Valley telephone exchange in Queensland, not the Portland Ericsson AXE telephone equipment which serviced my business.  

The Canadian and Australian technical consultants’ 30 April 1995 reports, under the heading “Cape Bridgewater Documentation,” states “More than 4,000 pages of documentation have been presented by both parties and examined by us.” (See Arbitrator File Nos/29 and 30) These reports are covered more thoroughly in other pages.

And at point 2.2 on page 4, in Dr Hughes’ final award, dated 11 May 1995, he notes, “In all, I have read in excess of 6,000 pages of documentary evidence submitted by the parties.” (See Prologue Evidence File No/9-A)

If either Mr James or Senator Evans were provided with the truth surrounding these 24,000 documents, my arbitration matters could have been completed in early 1996. So far, the arbitrator and the TIO office have managed to avoid being called to account for their devious and unethical conduct. Will they ever be held accountable?

Why didn't Dr Hughes tell Laurie James that he was aware that Telstra tampering with evidence, after I had provided it to an arbitration process, which must really be one of the worst crimes a defendant (in this case, the Telstra corporation) could commit against an Australian citizen.

So why, when evidence of this tampering was provided – more than two decades ago (see Open Letter File Nos/3637 and File No/38) to the Telecommunications Industry Ombudsman, John Pinnock, the chair of the TIO counsel, The Hon Tony Staley, the chair of the Telstra board, David Hoare and Telstra’s then-CEO Ziggy Switkowski AO – was it not investigated immediately? After all, it was Telstra’s own internal investigations, after the initial report, which uncovered this unlawful conduct during my arbitration, but that didn’t stop Ziggy Switkowski from accepting an Order of Australia award in 2014 despite sitting on this crime for more than 18 years now. Ziggy Switkowski and the new Telstra CEO Andrew Penn and chair John Mullins have a moral and legal obligation to investigate the criminal misconduct committed by previous employees during my litigation with Telstra.

Learn why Telstra's executives allowed the horrendous crimes and unscrupulous criminals, and corrupt politicians and the lawyers who control the legal profession in Australia to take charge of the COT Cases arbitrations. Shameful, hideous, and treacherous are just a few words that describe these lawbreakers.

The conclusion of Telstra’s original arbitration TF200 defence report, prepared and signed off by Telstra, states:

“The cause of the fault condition has been confirmed by Telecom Research to be due to the presence of a foreign substance possibly beer inside the telephone case which directly caused the incorrect operation of the telephone membrane hookswitch. When the hookswitch was removed from the foreign substance, the telephone operated correctly.

“The state of the telephone when received suggested that the telephone was not well cared for by the customer.

“If the customer had reported the liquid spillage when it occurred the telephone would have been replaced under standard maintenance procedures with no resultant loss of business.”

A drop of silicon 

Telstra eventually sold two containers of T200s as scrap to Liberty USA Pty Ltd, who in turn moisture proofed the phones with silicon and resold them to Poland. The person who secured the lucrative deal to sell these faulty TF200s was John Tuczynski, managing director of Liberty Australia Pty Ltd, who was also an ex-Polish national, like Mr Switkowski.

Absent Justice -Absent Justice - T200s

Mr Tuczynski’s method, using silicon on TF200 hookswitches to moisture-proof the phones, was a technique Telstra did not know. This could have saved the corporation a lot of money and EXICOM customers years of heartache. Remember, the Australian government and its citizens owned the Telstra Corporation at this time, but instead of looking for a solution to fix the EXICOM problem, Telstra decided it was easier and cheaper to tamper with the TF200s and blame the customer for any faults.

Telstra’s Ted Benjamin admitted, on 26 September 1997 to a Senate estimates hearing, that, as a TIO council member, he attended meetings where COT cases’ arbitrations were discussed. He also admitted that at no time did he advise these meetings of his conflict of interest, i.e., he never advised he was a co-in charge of Telstra’s arbitration defence of the COT claims. The Senate committee hearing condemned both John Pinnock and Mr Benjamin for allowing the defendants access to how the arbitrations were progressing. During the period where three senior Telstra executives were present at monthly TIO board and council meetings, at no time were the COT cases represented. In August and September 1995, Mr Benjamin also admitted to John Pinnock that 50 per cent of my May 1994 requested arbitration FOI documents were NOT released to me until 23 May 1995, after the arbitrator, Dr Hughes, brought down his award.

The material released on 23 May 1995, 12 months after I requested it, proved Telstra knowingly used the impracticable Cape Bridgewater Bell Canada tests as arbitration defence documents. Again, just as happened during the whole arbitration process, no one investigated why Telstra was allowed to withhold this vital information from me.

In my letter of 9 August 1995 to Mr Benjamin, I noted:

“I am now asking Telstra to supply this TF200 Telephone Report under the FOI Act. I am forwarding an additional $30.00 for this request . . . . 

“It appears by your own admission, in your letter dated 3 August 1995, that Telstra has only supplied various FOI documents in accordance with Telstra’s own views regarding each particular application.

“I find this late admission by Telstra of FOI documents most alarming, especially when I have been in a Settlement/Arbitration Procedure for some 15 months and documents have not been provided in accordance with the FOI Act . . . . 

“I demand that Telstra provide all the documentation associated with this TF200 Report so as to allow me the chance to defend those allegations contained within the Report. I await your response with regard to this matter. . . .

“I hope that the result on my request for the supply of the original documentation related to the TF200 Report receives a different response from you than that received to my request for this ELMI data” (Open letter File No/42)

I did eventually receive a copy of the second TF200 report, which shows that tests were done on 24 and 26 May 1994, and which therefore proves that the first tests, on 10 and 12 May 1994, were fabricated (see also Open letter File No/42), which I received on 28 November 1995 (six months after my arbitration was concluded). Similar ELMI testing data was not released to me by the Australian Communications and Media Authority (ACMA), under a number of FOI requests that I made between 2001 and 2008.

Arbitrator File No/45 shows that on 30 March 1995 – 11 months before the arbitrator’s letters to Mr James – the arbitrator’s own resource unit wrote to the TIO outlining the progress of my arbitration. The timeline shows I advised them I received my discovery documents via the agreed-to FOI process after my claim was finalised and after Telstra had submitted their defence of that claim.

John Wynack, Director of Investigations for the Commonwealth Ombudsman’s Office, and Tony Morgan, a National Chief Adjuster for GAB Robins (Australia), are both fully aware that most of these 24,000 documents were not related to my Cape Bridgewater business in any way. Not only did they not have any identification or schedules to explain where they were sourced from, but it was quite clear that some belonged to the Fortitude Valley and Lutwyche Ericsson AXE telephone exchanges in Brisbane, more than 1,200 kilometres from the telephone exchange my business was connected to. Clearly, this delivery of so many useless documents was deliberately designed to cause me as much heartache as possible.

More than 16,800 of those FOI documents were meaningless without the schedule detailing their relevance; I had only 13 days to address Telstra’s defence, with documents I had no way of reading.

When I advised Warwick Smith, the Telecommunications Industry Ombudsman (and administrator to my arbitration) about this terrible situation, being left with only 13 days to decipher what documents belonged to me and which belonged to the two other COT cases, he said to contact Dr Hughes, the arbitrator. However, the arbitrator’s office informed me that Dr Hughes had taken his usual Christmas break, which meant the 13 days left for me to answer Telstra’s 12 December 1994 defence would be over by the time Dr Hughes returned from leave. Warwick Smith’s response to this was: do the best you can.

Log Book

There was also no mention in Dr Hughes’ letter to Laurie James concerning the documents provided by Telstra were not intended for me or that Telstra had continued to withhold the main arbitration requested document namely the Portland/Cape Bridgewater Ericsson AXE telephone exchange logbook, which was requested under FOI and through the process of discovery. Dr Hughes was aware Telstra had not released the exchange logbook, which had the working notes of all my telephone complaints and those of other local Telstra subscribers for the period of my claim. The veracity of logbooks is irrefutable, yet Dr Hughes would not request the Cape Bridgewater exchange logbook for me. The Commonwealth Ombudsman’s office also requested this logbook to be supplied but was unable to obtain it. (See Home Page File No 10 -A to 10-B)

My facsimiles and subsequent follow-up telephone conversations, on 4 and 5 May, advised Dr Hughes of the nightmare these late 24,000 FOI documents caused for me and I asked for an investigation into why so many FOI documents, without proper FOI schedules, had been dumped on me to late to submit into arbitration, actually belonged to Ann Garms and Maureen Gillan and therefore were useless. I likewise advised Dr Hughes that fresh evidence not made available to me by Telstra because I had assisted the Australian Federal Police with their investigations suggested some of the faxed documents that I had previously reported to him and his Secretary Caroline Friend appeared to have been intercepted en route to his office.

On 5 May 1995, Dr Hughes wrote,

“I refer to your telephone message of 4 May and your facsimiles of 4 and 5 May 1995 and advise I do not consider grounds exist for the introduction of new evidence or the convening of a hearing at this stage.” He also reiterated his previous instructions: “any comments regarding the factual content of the Resource Unit reports must be received … by 5:00pm on Tuesday 9 May 1995”  (See Arbitrator False Evidence File 1).

Dr Hughes cared little about the justice he denied me by not allowing me to submit those of the 24,000 FOI documents I could decipher. He also refused to convene a hearing to determine why Telstra’s threats – to withhold all future relevant FOI documents from me – came to fruition. Two of the questions I raised in my telephone messages of 4 May 1995 and facsimiles of 4 and 5 May 1995, was why had the arbitration technical report not been signed off and why had it only assessed 11% of my claim documents. It is clear from this letter and Dr Hughes 11 May 1995 award that he ignored both those questions.

Dr Hughes knew that, by not considering grounds did exist for the introduction of the evidence that was originally disallowed to be submitted while the AFP was investigating Telstra’s monitoring of my single-club patrons, he was saving Telstra thousands upon thousands of dollars in compensation.

What is so important concerning the two mini-reports I had compiled from these non-submitted 24,000 documents which Dr Hughes would not allow me to submit into arbitration is when Dr Hughes submitted his final findings in his award at 2.1 d he notes:

"...I considered it essential that both parties had every reasonable opportunity to place relevant material before me, regardless of the time frame set out in the arbitration" 

If this was true, then why did Dr Hughes refuse to allow me the extra time on 4 and 5 May 1995, to submit these two mini-submissions?

Part of the submission I wanted to submit to Dr Hughes was proof beyond all doubt that the Cape Bridgewater BCI tests had never taken place at any time as shown in the BCI report. I even discussed this latest BCI issue in my conversation with Dr Hughes on the 4 May 1995. It is clear, there is more to Dr Hughes not allowing me to submit this late received BCI material. 

My pleas to the arbitrator, to bring Telstra to account for their actions when I had still not received my requested discovery documents amazingly, he refused to take calls as his secretary Caroline Friend is aware. Even though the Commonwealth Ombudsman had to be brought into the arbitration in order for Telstra to obey the Freedom of Information (FOI Act) and the government solicitors took control of the delivery of my arbitration documents which then never arrived until 23 May 1995, two weeks after the conclusion of my arbitration the arbitrator had the gall to write in his draft award at point 2.23: 

"...Although the time taken for comSenate Hansard Evidence File No-1 )

These official statements in the Senate occurred months before Dr Hughes and John Pinnock spread falsehoods concerning my FOI issues to Laurie James, as is shown below in chapter four.

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  1. Spying during the COT arbitration by public servants were tolerated by the Australian government during the COT arbitrations as well as during their own business dealin, including the use of electronic surveillance equipment, to gain an illegal advantage over litigants during court proceedings and private negotiations. See Chapter 4 Government spying/Scandrett & Associates facsimile interception report, Open Letter File No/12 and File No/13.
  2. Unaddressed threats carried out by the Telstra Corporation against the COT Cases during their arbitrations. See Senate Evidence File No 31
  3. Withholding important discovery documents in an arbitration procedure: Absent Justice Part 2 - Chapter 14 - Was it Legal or Illegal?
  4. Tampering with evidence in the arbitration: Tampering With Evidence.
  5. Relying on defence documents that are known to be flawed: Telstra’s Falsified BCI Report); 
  6. AUSTEL (for the government) concealed vital evidence from the arbitration process that would have won my case:  AUSTEL’s Adverse Findings at points to 212.
  7. The arbitrator ordered the removal of vital evidence from two reports: Refer to Chapter 1 - The collusion continues and Chapter 2 - Inaccurate and Incomplete
  8. Organized crime via the Telstra network, i.e. telephone calls and faxed documents intended for one business being redirected to another with the proceeds of that directed information earning the criminals involved millions of dollars in ill-gotten gains Refer to Chapter 4 Government spying and Australian Federal Police Investigations-1Fraud allegations against Telstra during the COT arbitrations were registered with the Major Fraud Group Victoria Police by Barrister Sue Owens, only to be squashed under pressure by the Australian government (see following transcripts Major Fraud Group Transcript (2)) 
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“…your persistence to bring about improvements to Telecom’s country services. I regret that it was at such a high personal cost.”

Hon David Hawker

“…the very large number of persons that had been forced into an arbitration process and have been obliged to settle as a result of the sheer weight that Telstra has brought to bear on them as a consequence where they have faced financial ruin if they did not settle…”

Senator Carr

“I am writing in reference to your article in last Friday’s Herald-Sun (2nd April 1993) about phone difficulties experienced by businesses.

I wish to confirm that I have had problems trying to contact Cape Bridgewater Holiday Camp over the past 2 years.

I also experienced problems while trying to organise our family camp for September this year. On numerous occasions I have rung from both this business number 053 424 675 and also my home number and received no response – a dead line.

I rang around the end of February (1993) and twice was subjected to a piercing noise similar to a fax. I reported this incident to Telstra who got the same noise when testing.”

Cathy Lindsey

“…your persistence to bring about improvements to Telecom’s country services. I regret that it was at such a high personal cost.”

The Hon David Hawker MP

“A number of people seem to be experiencing some or all of the problems which you have outlined to me. …

“I trust that your meeting tomorrow with Senators Alston and Boswell is a profitable one.”

Hon David Hawker MP

“Only I know from personal experience that your story is true, otherwise I would find it difficult to believe. I was amazed and impressed with the thorough, detailed work you have done in your efforts to find justice”

Sister Burke

“All that is required for evil to triumph is for good men to do nothing”

– Edmund Burke